Motional, a self-driving technology company, announced on Tuesday that it will be focusing on developing its core technology and delaying commercial robotaxi deployments. This decision comes as the company undergoes a restructuring process and plans to lay off staff. The move follows electric carmaker Tesla’s upcoming unveiling of its robotaxi, called “Cybercab,” on August 8.
In response to this news, Aptiv, an auto parts supplier that had a stake in Motional, announced that it would be selling its shares in the joint venture with Hyundai Motor. As a result, Hyundai Motor will be providing an additional $475 million in funding to Motional. Karl Iagnemma, CEO of Motional, stated that the deployment of driverless vehicles on a large scale will take time and will only happen when the technology has sufficiently matured and a clear business case for autonomous deployment is established.
As part of the restructuring process, Motional will be reducing its workforce and focusing on developing and scaling its driverless technology. The company will also be stepping back from near-term commercial deployments and other related activities. Although the exact number of employees to be laid off was not disclosed, Motional confirmed that roles across various locations and functions will be affected. Currently, Motional partners with ride-hailing platforms Uber and Lyft to offer driverless taxi services in Las Vegas and Los Angeles. The startup has already completed over 100,000 autonomous rides in Las Vegas alone.
